SIGA Reports Financial Results for Three and Twelve Months Ended December 31, 2020
- Approximately 363,000 Courses of Oral TPOXX® Delivered to
- International Contracts for the Purchase of up to Approximately
- Corporate Update Conference Call Today at
“SIGA’s fourth quarter and annual financial results are highlighted by the delivery of approximately 112,000 and 363,000 courses, respectively, of oral TPOXX® to the
Summary Financial Results
($ in millions, except per share amounts)
Three Months Ended
Three Months Ended |
Three Months Ended |
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Total Revenues Operating Income (Loss) (1) Income (Loss) before Income Taxes (1) Net Income (Loss) Diluted Income (Loss) per Share |
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Fiscal Year Ended
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Year Ended |
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Total Revenues Operating Income (Loss) (1) Income (Loss) before Income Taxes (1) Net Income (Loss) Diluted Income (Loss) per Share |
( ( ( ( |
(1) Operating Income excludes, and Income (Loss) before Income Taxes includes, costs in connection with the retirement of the Company’s term loan, interest expense, interest income and adjustments to the fair value of the Company’s outstanding warrant. Both line items exclude the impact of income taxes.
Recent Key Activities:
- In
January 2021 , thePublic Health Agency of Canada (PHAC) issued a contract (the Contract) for the purchase up to approximately $33 million of oral TPOXX® (tecovirimat) within five years. The Contract specifies firm commitments for the cumulative purchase of approximately $17 million of oral TPOXX® by March 31, 2023; the remaining courses under the Contract are scheduled to be purchased after March 31, 2023 and are subject to option exercise by PHAC. The Contract award follows, but is separate and incremental to, the issuance inApril 2020 of a contract by the Canadian Department of National Defence (CDND) for the delivery of up to approximately $14 million of oral TPOXX®. Both contracts awarded byCanada were coordinated betweenSIGA andMeridian Medical Technologies, Inc. under the international promotion agreement (as amended) that was entered into by the parties inJune 2019 . - In the fourth quarter of 2020, the Company delivered approximately 112,000 courses of oral TPOXX® to the SNS. SIGA has recognized approximately
$35 million of revenue in connection with this delivery, of which$3.5 million relates to amounts previously received in connection with raw material procurement and which had been recorded as deferred revenue.
Recap for 2020
- For the year, the Company delivered approximately 363,000 courses of oral TPOXX® to the SNS, generating revenues of approximately
$113 million . - In the third and fourth quarters of 2020, respectively, the Company filed submissions for regulatory approval of oral TPOXX® in
Europe andCanada , and such submissions are seeking a broad label indication covering the treatment of smallpox, monkeypox, cowpox, and complications from Vaccinia infection. - In the second quarter of 2020, the Company made its first international delivery of oral TPOXX®.
- In the first quarter of 2020, the Company voluntarily prepaid its Term Loan and accrued interest in an approximate aggregate amount of $87.2 million. Upon such prepayment, the Term Loan was extinguished.
Share Repurchase Activity
During the fourth quarter of 2020, SIGA repurchased approximately 1 million shares of its common stock, for approximately
COVID-19 Pandemic
The COVID-19 pandemic has caused significant societal and economic disruption. Such disruption, and the associated risks and costs, are expected to continue for an indeterminate period of time. Given the uncertain scale, scope, and current and future impact of the pandemic, the Company is regularly reviewing business and financial risks, and seeking coordination with its government partners with respect to the performance of current and future contract timing and execution. Additionally, the Company is coordinating closely with service providers and vendors, in particular contract manufacturing organizations that constitute our supply chain, to review actions and risks caused by the COVID-19 pandemic. Finally, the Company has proactively provided its employees with resources and other support to help ensure continued success in remote work settings as they navigate the current pandemic environment.
The COVID-19 pandemic has not adversely affected the liquidity position of the Company, nor is it currently expected to have a material adverse effect on the financial condition of the Company. The pandemic could delay the timing of international contract awards for oral TPOXX® given the need of government officials to focus on meeting the demands of the current COVID-19 pandemic. Otherwise, the pandemic is not currently expected to have a material adverse effect on the short-term financial results of the Company, although the Company cannot provide assurances as to the ultimate impact of the pandemic upon the broader macro environment or the Company’s industry.
Conference Call and Webcast
SIGA will host a conference call and webcast to provide a business update today,
Participants may access the call by dialing 877-407-6184 for domestic callers or 201-389-0877 for international callers. A live webcast of the call will also be available on the Company's website at www.siga.com under the 'Events & Presentations' tab in the Investor Relations section, or by clicking here. Please log in approximately 5-10 minutes prior to the scheduled start time.
A replay of the call will be available for two weeks by dialing 877-660-6853 for domestic callers or 201-612-7415 for international callers and using Conference ID: 13715918. The archived webcast will be available in the Events and Presentations section of the Company's website.
ABOUT
About Smallpox1
Smallpox is a contagious, disfiguring and often deadly disease that has affected humans for thousands of years. Naturally occurring smallpox was eradicated worldwide by 1980, the result of an unprecedented global immunization campaign. Samples of smallpox virus have been kept for research purposes. This has led to concerns that smallpox could someday be used as a biological warfare agent. A vaccine can prevent smallpox, but the risk of the current vaccine's side effects is too high to justify routine vaccination for people at low risk of exposure to the smallpox virus.
FORWARD-LOOKING STATEMENTS
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are subject to various known and unknown risks and uncertainties, and SIGA cautions you that any forward-looking information provided by or on behalf of SIGA is not a guarantee of future performance. More detailed information about SIGA and risk factors that may affect the realization of forward-looking statements, including the forward-looking statements in this press release, is set forth in SIGA's filings with the Securities and Exchange Commission, including SIGA's Annual Report on Form 10-K for the year ended December 31, 2020, and in other documents that SIGA has filed with the SEC. SIGA urges investors and security holders to read those documents free of charge at the SEC's web site at http://www.sec.gov. Interested parties may also obtain those documents free of charge from SIGA. Forward-looking statements are current only as of the date on which such statements were made, and except for our ongoing obligations under the
The information contained in this press release does not necessarily reflect the position or the policy of the Government and no official endorsement should be inferred.
Investor Contacts:
lyonker@edisongroup.com
mcrawford@edisongroup.com
1 http://www.mayoclinic.org/diseases-conditions/smallpox/basics/definition/con-20022769
CONSOLIDATED BALANCE SHEETS
As of
ASSETS | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 117,890,240 | $ | 65,249,072 | |||||
Restricted cash and cash equivalents, short-term | — | 95,737,862 | |||||||
Accounts receivable | 3,340,263 | 4,167,996 | |||||||
Inventory | 20,265,519 | 9,652,855 | |||||||
Prepaid expenses and other current assets | 2,112,069 | 5,234,000 | |||||||
Total current assets | 143,608,091 | 180,041,785 | |||||||
Property, plant and equipment, net | 2,103,990 | 2,618,303 | |||||||
Deferred tax asset, net | 2,544,053 | 14,151,002 | |||||||
898,334 | 898,334 | ||||||||
Other assets | 676,923 | 856,766 | |||||||
Total assets | $ | 149,831,391 | $ | 198,566,190 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 1,278,217 | $ | 3,054,032 | |||||
Accrued expenses and other current liabilities | 9,205,293 | 8,636,911 | |||||||
Term debt, current | — | 80,044,866 | |||||||
Total current liabilities | 10,483,510 | 91,735,809 | |||||||
Warrant liability | 6,639,211 | 6,116,882 | |||||||
Other liabilities | 2,915,401 | 2,929,743 | |||||||
Total liabilities | 20,038,122 | 100,782,434 | |||||||
Commitments and contingencies (Note 14) | |||||||||
Stockholders' equity | |||||||||
Common stock ( |
7,720 | 8,127 | |||||||
Additional paid-in capital | 224,978,430 | 220,808,037 | |||||||
Accumulated deficit | (95,192,881 | ) | (123,032,408 | ) | |||||
Total stockholders' equity | 129,793,269 | 97,783,756 | |||||||
Total liabilities and stockholders' equity | $ | 149,831,391 | $ | 198,566,190 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Years Ended
2020 | 2019 | 2018 | ||||||||||
Revenues | ||||||||||||
Product sales and supportive services | $ | 115,471,071 | $ | 11,190,064 | $ | 468,918,468 | ||||||
Research and development | 9,488,233 | 15,552,021 | 8,135,314 | |||||||||
Total revenues | 124,959,304 | 26,742,085 | 477,053,782 | |||||||||
Operating expenses | ||||||||||||
Cost of sales and supportive services | 14,797,419 | 1,782,838 | 95,268,974 | |||||||||
Selling, general and administrative | 14,003,184 | 13,252,136 | 12,879,738 | |||||||||
Research and development | 10,938,930 | 13,303,149 | 13,016,183 | |||||||||
Patent expenses | 719,141 | 726,105 | 789,489 | |||||||||
Total operating expenses | 40,458,674 | 29,064,228 | 121,954,384 | |||||||||
Operating income (loss) | 84,500,630 | (2,322,143 | ) | 355,099,398 | ||||||||
(Loss) gain from change in fair value of warrant liability | (3,525,846 | ) | 5,091,256 | (6,922,624 | ) | |||||||
Loss on extinguishment of Term Loan | (4,981,461 | ) | — | — | ||||||||
Interest expense | (3,016,817 | ) | (15,769,768 | ) | (15,478,203 | ) | ||||||
Other income, net | 532,085 | 2,822,232 | 78,940,985 | |||||||||
Income (loss) before income taxes | 73,508,591 | (10,178,423 | ) | 411,639,556 | ||||||||
(Provision) benefit for income taxes | (17,166,581 | ) | 2,937,276 | 10,168,272 | ||||||||
Net and comprehensive income (loss) | $ | 56,342,010 | $ | (7,241,147 | ) | $ | 421,807,828 | |||||
Basic earnings (loss) per share | $ | 0.71 | $ | (0.09 | ) | $ | 5.28 | |||||
Diluted earnings (loss) per share | $ | 0.71 | $ | (0.15 | ) | $ | 5.18 | |||||
Weighted average shares outstanding: basic | 79,259,000 | 81,031,254 | 79,923,295 | |||||||||
Weighted average shares outstanding: diluted | 79,437,306 | 82,175,023 | 82,708,472 |
Source: SIGA Technologies Inc.